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Corporate Crime & State

Responsibility

The Case of Ship Breaking

S. Rizwana Hasan Chief Executive, BELA

UN TNC - Geneva

October 2016

The business has been on a geographical move

A significant share of the ageing fleet ready for retirement was processed in Europe and in the US up until the early 70s

Subsequently, Taiwan and South Korea became receivers

Today vast majority are scrapped in non-facilitated beaches of South Asia where labour is readily available at low cost and

enforcement of laws is weak

Most Dangerous(ILO)

Ship Recycling vs. Ship Breaking

On the BEACH

In the Open

No Containing Facility

No Structure

Employment; Supply of Steel

Poverty Eradication

Each year, approximately 1000 ocean-going vessels are dismantled

More than 70% of these is simply ramped up on a tidal beach in South Asia

Oils, toxic paint chips, and dust pollute the sea

Hazardous material such as asbestos and heavy metals poison the workers

Child labour is a common phenomenon

Death and grievous injuries are regular incidences

Where do these ships come from?

Germany, Denmark, Bulgaria, Poland, Belgium, Greece, Italy, UK, Cyprus, Netherlands, UK, Malta

…………………………………..

More than 893 ships were imported from 2012 –2015 carrying flags of convenience (FoC)

Comoros – 40 Cyprus (EU) – 11 South Korea-17

Panama – 207 St. Kitts & Nevis – 54 Bulgaria-2 India-10 Thai – 34 Cook Island-7 Tuvalu – 26 China – 1 Tonga-1 Liberia – 50 Singapore-14 Taiwan-1 Korea-1 Malta (EU) – 19 Vanuatu-1 Bahamas – 13 Bangladesh – 36 Barmuda-4 Moldova – 1 Russia-17 Equatorial Guinea-1 Sierra Leone –15 Cambodia – 10 Turkey-2 USA – 1 Hong Kong – 22 Saudiarabia-1 Malaysia – 1 Vietnum-4 Palau-3 Moroni-3 Palau-3 Isle of Man-2 Greece-3 Marshall Island-22 Niue-2 UK-7 Malaysia-5 Papua Neu Guinea-2 Antigua Harbuda-2 Kiribati-2 Bulgaria-2 Philippine-22 Tanzania-2 Unknown-138 Beliz-2 British-1 Diminica-5 Monrivia-1

Vincent & Granadines-13

2015 Facts & Figures

768 469

4,523,347

6,759,633

3,731,532

4,148,851

1,083,104

77,400

57,096

0 2,000,000 4,000,000 6,000,000 8,000,000

India

Bangladesh

Pakistan

China

Turkey

EU

RoW

GT

GT

2015 Facts & Figures

Greece (76 ships)

China ( 55 ships)

South Korea (27 ships)

Russia (24 ships)

Panama (91)

Saint Kitts and Nevis (49)

Liberia (46)

Comoros (25)

VESSELS BROKEN ON THE BEACH:

Hazardous material Unit Bangladesh

Asbestos t 79,000

PCBs (mainly cables) t 240,000

ODS (mainly polyurethane foam) t 210,000

Paints (metals, tributyltin (TBT)

and PCBs) t 69,200

Heavy metals t 678

Waste liquid organic m3 1,978,000

Miscellaneous (mainly sewage) m3 107,000

Waste liquids inorganic (acids) t 775

Reusable liquids organics t 675,000

Source: The World Bank, 2010

Ship Breaking and Recycling Industry in Bangladesh and Pakistan

The Toxic Industry on the Beach

SA is dumping ground

International Legal Regime Voluntary guidelines did not work

Basel Convention (1989)

Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (2009)

Yet to enter into force; does not ban beaching; possible to circumvent and green wash (Sree Ram Yard, Alang); does not address FoC; puts the fox in charge of chicken; cash buyers not addressed; watered down by the corporations

EU regulation (provides for listing of yards where EU ships can go; requires built structures; allows independent verification and third party request for action against non-compliance; leaves scope for financial incentive)

Yet to enter into force; does not address FoC

Judgments

Closure of ship breaking yards without clearance

Cannot continue on open beaches

Ships imported have to be decontaminated outside Bangladesh

Framing of Rules (applicable national laws and the Basel Convention)

Setting up of High Level Technical Committee to monitor and oversee implementation of court orders

Circumvented: Different authority with same

signature

One authority using different letterheads

Different authority with same address (Wickhams

Cay 1, Road Town, Tortola, British Virginia Islands)

Labour Conditions (deaths 103; injuries 131)

Sources: National Geographic, NGO Ship Breaking Platform, FIDH

Binding; no voluntary guideline

The conditions in shipbreaking yards on the beaches in South Asia would never be allowed in ship owning countries in Europe, North America or East Asia (No Double Standard)

Ship owners earn millions of dollars with every vessel beached and the true costs of safe and clean ship recycling are externalised to poorer communities and their environment (No Externalization of Costs)

Regulations for the entire chain

Polluter Pays Principle (No Green Washing)

Access to ‘effective justice’ for the victims (Institutional-no forum shopping, Technical, Financial barriers to be removed)

Thank you for your

attention!